N.J. Admin. Code § 18:26-6.15 - No fault insurance

(a) The insurance proceeds received by reason of medical expenses incurred as a result of personal injury to the decedent should be included in any calculations for purposes of the New Jersey transfer inheritance tax, so as to offset the amount claimed for medical expenses as a result of the accident.

(b) The insurance proceeds payable at the death of an income producer, defined by N.J.S.A. 39:6A-2.d, as a result of injuries sustained in an accident, which are paid to the estate of the income producer, are subject to the New Jersey transfer inheritance tax. In all other instances this amount is exempt.

(c) The amount paid at death to any person under the essential services benefits section of personal injury protection coverage as defined by N.J.S.A. 39:6A-4.c is exempt from taxation.

(d) The claim for funeral expenses is to be reduced by the amount paid under the funeral expenses benefits section of personal injury protection coverage as defined by N.J.S.A. 39:6A-4.e.

Notes

N.J. Admin. Code § 18:26-6.15

Adopted by 50 N.J.R. 1624(a), effective 7/16/2018